The Basic Purpose of Bookkeeping Is To

question 109

Multiple Choice

The basic purpose of bookkeeping is to:

• A)Provide financial information about an economic entity.
• B)Develop the types of information best-suited to specific managerial decisions.
• C)Record the financial transactions of an economic entity.
• D)Determine the taxable income of individuals and business entities.

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Definitions:

Net Worth

The total assets minus total outside liabilities of an individual or a company, representing the financial position at a given moment.

Proxy Solicitation

The process of obtaining authority to vote on behalf of shareholders.

Securities and Exchange Commission

A U.S. government agency that oversees securities transactions, activities of financial professionals, and maintains fair and orderly functioning of the securities markets.

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.